Cherry AB remain positive despite ComeOn difficulties

Stockholm listed online gambling group Cherry AB reports solid growth, despite its operational restructure to acquired asset ComeOn, in its 2017 year end report.

Publishing its results, Cherry records a group revenue increase of 104% to SEK 2.2m (FY 2016: SEK 1.1m), with organic assets contributing 27% of revenue share.

A strong revenue performance saw Cherry declare a 2017 EBIT of SEK 429m (€43m), up 146% on corresponding 2016’s SEK 174 million (€17m).

However, as reported last November, Cherry’s full-year profits have been impacted by a tougher than anticipated integration of ComeOn online gambling assets, acquired outright in H1 2017 for €280m.

The tough integration of ComeOn, sees Cherry governance declare group 2017 operating profits of SEK 110m (€11m), down 8% on 2016’s SEK 125m (€12.5m).

Anders Holmgren, Cherry AB Group CEO, commented: “Over the year, we integrated the operations of B2C company ComeOn, Cherry’s largest acquisitions over the years, into our Online Gaming business area.

“For the most part, this process has progressed as planned, although, in mid-2017, we saw that the company’s costs, market focus and management were not living up to our expectations.

“Following an intensive period in the second half of the year, the company is back on the growth curve that we envisage. Together, ComeOn’s management and I have identified several priority improvement factors for 2018, and these will be implemented over the year.”

Meanwhile, Game Lounge continues to expand its services and operations within new markets such as Japan, which will aid Cherry’s future growth initiatives.

“After a year as President and CEO of Cherry, I am able to confirm that Cherry can report yet another good year, from both a financial and operational perspective.

“A year ago, I wrote that there remained an incredible amount to be done in the gaming industry and that what is great about Cherry is that its five diversified business areas span the entire gaming industry and that Cherry AB owns and manages highly interesting companies.

“We have already benefited from this strength and progressed some distance in our plans” Holmgren further details in Cherry’s 2017 trading statement.

“A year later, I have the same feeling; we have much ahead of us and Cherry is the player that can most naturally benefit from all of the opportunities available.

“We will continue to focus on companies run by extremely strong and ambitious individuals with a mix of entrepreneurs and specialists with a strong spirit of innovation.

“Creativity and hard work drive the products forward, also allowing Cherry’s business areas to grow faster than their respective markets.”

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